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Cyprus 38, U.s. 10, Sandra Smith 9, Us 9, Russia 9, Europe 8, S&p 8, Nike 7, New York 7, Adam 7, Ted Kaufman 6, Italy 6, Pepsi 6, Sandra 5, Illinois 4, California 4, America 4, Advair 4, Melissa 4, Hsbc 3,
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  FOX Business    Markets Now    News/Business.  
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    March 22, 2013
    1:00 - 3:00pm EDT  

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>> what is going on, sandra? sandra: so nice to join you on this friday afternoon. you have the dow jones industrial average of about 78 points. sitting at about 14,499. if we did a close above there, that would be a higher close for the week. right now we have some positive sentiment after some positive.
it would be the first losing week. it would be the sixth week. 14514. that is the number we are watching on the dow. >> good stuff, sandra. thank you so much. natural gas is fighting to hold the level. we are in the pits of the cme. what is the big thing driving market today. >> it is a strong stock market. optimism that we will get a deal. the way you want to look at it is the wti spread.
our crude is going up because we feel better about the u.s. that really is a story. crude is slowing down here a bit. natural gas was over four dollars owed in second day in a road. some people think we will go to call. if you really want the story of natural gas, you have to look over to the pond again. we are seeing record prices over in europe. they went up 50% in a day. i want to see that here for sure. back to you, melissa. melissa: a big hurdle for natural gas. thank you very much. david: i want to turn our focus back to cyprus.
if they fail to come to an agreement by monday, the european central bank says it will be forced to send a lifeline and send them into financial collapse. jeremy hill says there is a straightforward way to fix all of this. he is here now to explain it. cyprus is a very messy situation. even as we sit here right now. there is lots of talk about rating bank accounts and pension funds. the take away from all of that is we have to be cognizant with the fact that there is an axiom in wall street and thinking. it is almost like the sun setting in the west. you do not hurt the little guy in bank accounts. david: at the end of the day, we care about this in the united
states. this is a very small country. nobody wants to see the people her. if they come up with a plan, how do you avoid the on -- >> i agree with you. i do not think there is a way to avoid it at this point. there is a plan in place right now. if you are a corporate depositor or you are a rich man who has enjoyed the benefits of cyprus over the last several years, there is no way that you don't take a haircut. >> as that money flows out, the ecb has to step in with even more money? >> they may step in with more money. that is all being debated right now. the preponderance of the
evidence right now is in fact that the risk in europe systemically, whether it be in spain or italy is a little bit higher today. if i was a spanish favor right now, i would have to be thinking really hard right now. >> you bring up the depositors in spain. let's bring up the depositors in italy. they are looking at their accounts. they cannot ignore what is happening. are we seeing an outflow from those banks? >> i do not think we will know until after we get ecb numbers at the end of this month and probably about 45 days. the real issue is that if you
have any money whatsoever in the eu, you may think that real estate in miami is looking a lot better today. >> you wrote whatever bailout plan they came up with while not -- >> they could do it. the issue, adam, is that and leslie have a european type of insurance scheme that even if you say, well, we bolstered a single state insurance scheme, i do not think it brings confidence back into the system. >> we appreciate you coming here on fox business network. be well. melissa: there has been a lot of doomsday talk about municipalities filing for bankruptcy which has some investors scared. here is charlie to explain. charlie: we just did a whole segment on fox business that talked about doomsday and
municipalities. melissa: we are teasing the fact that you are here and you are fantastic. charlie: statements of fact you do not need to attribute. by the way, this segment corresponds pretty good with the last one. you have a couple things going on in the markets right now. creditors are now getting paid. where are they putting their money? they will not put it in cyprus shares. we have a long way to go. they may put it in italic and bonds jon corzine did. they are putting their money right now and beauty that. i would say if you are the
average investor out there, this is not for the faint at heart. if you are a traitor, if you are not looking to hold on maturity, there are some interesting guys here. tobacco bonds have matured. you probably will not get your principal back. you can trade that stuff and make money off of it if you buy enough quantity. it is triple tax-free. anything related to california, municipalities, people are buying them. they are buying them at discount and they are trading them. they are clipping the coupons. do they hold them until maturity? maybe not. here is one more, yankee stadium that that was issued to basically build the garage, again, buying with pennies on the dollar. you do not necessarily hold it until maturity. this is a trade.
trade detail risk. big risk here. you can make some money. >> i will follow your advice and not go into this market. california, basketcase when it comes to taxes. it seems too low if they are trading at pennies on the dollar. charlie: it is the real distress stuff like this west virginia tobacco bonds. why aren't the tobacco bonds distressed? when you raise taxes, people will not smoke. they will not pay the taxes. as a trade, you can make some money. jon corzine rolled the dice with short term, i it was italian bonds and spanish bonds.
his dad turned out money good. people lost confidence in his ability to make money. at some point, though, this is what the smart money is doing. at some point, it is buying bonds coming out of greece. buying on pennies on the dollar. they are making some cash out of it. charlie: it is a risk. melissa: charlie gasparino, thank you very much. >> a marathon session in the senate today. melissa: the companies new blackberry hitting store shelves today. >> putting the madness in march madness.
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melissa: as we do every 15 minutes, let's check the markets. sandra smith is on the floor of the new york stock exchange. sandra: across the board, it seems like people are definitely shopping. tiffany shares of 2.5% right now. they did report that they see a lackluster first quarter.
they are talking about the first quarter that we are in. that playing out and that nike shares are hitting a 52 week high. those gross margins that investors are really chewing on. that unexpectedly move into years. nike finally doing something right. >> we were talking about those margins. sandra smith, always, thank you. the senate gearing up for a long night. which edson is in washington, d.c. what do you have for us, rich? rich: this is the first time we have seen this in years. since budgets are mostly nonbinding spending blueprints
and do not have the force of law, these amendment votes are forcing democrats and republicans into political choices. they will probably fail as one budget cuts trillions in spending imbalances in ten years. the other does not. >> the senate did reject that the idea of balancing the budget by an arbitrary date should come before middle-class families and broad-based economic growth. >> adopting a budget that never balances as sadly the democratic budget does will only accelerate our path to where greece and europe is. rich: they will probably vote on a few% of them. they will consider whether to allow states to charge sales tax on internet sales. they have already voted down
another amendment. they will vote to end automatic congressional pay increases. even if the senate approves these amendment, they are part of a non-binding budget. back to you. >> i think a lot of people are saying, let them go on their spring break. farmland prices have doubled since 2009. jeff flock is on the farm next. melissa: pepsi redesigning its bottle for the first time in ten years. will it lead to bigger sales? what do you think? >> take a look at how the dollar is faring today. we will be back right after this. ♪ [ indistinct shouting ]
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>> at 22 minutes past the hour, i have your fox news minute. president obama is in jordan. his final stop in the middle east. his country has been struggling with more than 400,000 syrian refugees who have crossed. assad is bowing to wipe out extremists. among the dozens killed was a 84-year-old cleric who is one of his strongest supporters. eighty-four people were wounded in the explosion. a marine shot and killed two other marines before turning the gun on himself. the shooter was a staff member at the quantico school. the two victims, a male and female, were both active duty marines. this comes just three days after seven marines were killed in a training accident in nevada.
those are your headlines. back to melissa and adam. melissa: thank you. farmland prices doubling in the u.s. does this signal a bubble brewing in america's heartland? jeff flock is in grundy county, illinois. jeff: want to buy a farm, melissa? melissa: sure, why not. jeff: we are talking about investing in farmland. a lot of people on wall street are doing it right now. take a look at this piece of ground. 160-acre parcel in grundy county, illinois, corn and beans, do what ever you want around here. i have a man who makes his business making loans to farmers.
>> the ability for people to pay on farmland will be there. we think there will be some good solid reasons why the price of land will stay stable. jeff: i want to show viewers what we are talking about here. look at how much it has increased in the last year. in the last two years, the jump is even more dramatic. >> the ability to make money on the farmland is what is holding prices up and will probably continue to do that for many years to come. this is a business that is a livelihood of many people. we want to make sure that the
people who are in it now can say in it for a few years. jeff: bankers like you said land values will either remain stable, 28% think they will increase. >> as long as the commodity prices stay at a normal level, we will see that land prices stayed very stable. jeff: if you bought this piece of land, it is already cash rent it. you have $300 coming back a year on it and you would also have a nice piece of land as well. melissa: absolutely. i look perfect for that part. jeff flock, thank you very much. >> the blackberry the ten is finally hitting stores. the new touchscreen device is back by the canadian firms biggest marketing budget in
history. the u.s. launch was kicked off last night in times square. $3.4 billion is expected. that has investors jumping in. the stock up almost 21%. they used to have 50% of the market. can they come back? melissa: it is amazing. >> coming up on "countdown to the closing bell," more bullish on the company. he has increased his position 50%. melissa: he is a brave guy. cyprus scrambling to save its banking system. steve moore of the "wall street journal" is here with that next. >> despite the concerns of cyprus, stocks are higher. the dow just about ten points off session highs.
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adam: forget green with envoy. green is good. we're going to head back to the new york stock exchhnge. sandra smith will tell you why a lot of people might be smiling right now. >> well, for one, there was a big wall street debut today and that was merin software. ceo was on "varney & company". the offering size is seven and a half million. a very successful offering. you had a open right around 19. the high of the day, 19.95. it is trading down 9%. so a lot folks are watching that very successful
wall street debut. this is an ad-tracking software company. so basically companies use this to track the performance of their advertisements. what is really interesting, the company itself sees its main competitors as adobe, google, et cetera. so a big wall street debut, the second one of its kind so far this week. maybe a good sign for the market. back to you guys. adam: all right, sandra, thank you very much. >> thank you. melissa: so the european central bank is giving cyprus to reach a deal to restructure the insolvent banks but as the parliament there struggles to find a solution, we're asking should they just let the cyprus banks go bust? steve moore, senior economics writer at "the wall street journal" of course we're asking this out of the clear blue. this is an interesting op-ed in "the wall street journal" that was talking about maybe how to do this in a structured way. what do you think about that, steve? >> you know, i think there are some advantages to having a country like cyprus,
actually, repudiate its debt because one of the things i find looking around the world, even in the united states, is that this sovereign debt is treated like it's, you know, completely risk-free and it is not risk-free. there should be a risk premium associated with government debt and if you had a country like cyprus that essentially declared bankruptcy, and renegotiated these debt agreements, that might raise the interest rates of other countries. and that might not be such a bad thing. there would be more money going into private companies and less going into government. >> yeah. >> the other element of this i think is really interesting, there is a big debate whether the e.u. or whether russia will bailout cyprus. melissa: right. >> cyprus, according to recent figures i saw, the russians have about $50 billion invested in cyprus banks. so they have a lot at stake here. even though they seem tt be backing away from any kind of a bailout measure. melissa: no, absolutely.
i think that is the larger story that maybe a lot of people are missing that this story has really a lot to do with russia. they have their hooks very deep in cyprus. that is their kay manned island equivalent. >> that's right. melissa: they talk about hey we bail you guys out in exchange for it we get natural gas field? ore we should get a military base there. >> that's right. melissa: should europe, russia using this, people use words like money laundering? should we be focused more on that part of the story, steve? >> a little bit. russia has been an adversary of the united states 75 years, not so today as it was in the past but certainly not one of our closest allies. giving the russians the kind of foothold in that area probably wouldn't be the best thing for our national security. you know, cyprus matters for a couple of reasons that you just mentioned i want to
highlight. one is, most people go, wait, why would we care about this tiny island of cyprus? it is a banking center and it is kind of the cale man islands of europe. the -- cayman islands of europe. the second reason they have a lot of oil and natural gas potentially. they could be a energy superpower if they got their act together and russia certainly wants a piece of that action. melissa: yeah. steve, as i watch the story, should we say to our elves, hey, russia has 50 billion in deposits there. they should be the ones bailing them out. they get all the advantage of cyprus. they should put their money where their mouth is? or should we say the opposite, it is dangerous they have this relationship in this strong hold and their hooks there and have a military presence there? should we use this as opportunity to brick them up from cyprus? what do you think is the right way to look at it? >> i don't think the united states should be involved virtually at all. this is matter for europe. the real question it will be
russia or whether the e.u. by the way the e.u. should have bigger national security concerns than we do whether russia gets a foothold in cyprus. my attitude, melissa, the united states should sit back and watch this play out. i wouldn't be surprised --, look the europeans have a lot more to lose, if cyprus goes under that risks a contamination effect that really spooks europeans. that is one of the things holding back their market. melissa: should they be pushing for russia to bailout cyprus or should they be worried about it and trying to separate them from europe? what do you think real quick before we go. >> if i were the europeans i would be very concerned because it looks like the second domino to fall with greece being the first. melissa: steve moore, thank you so much. always so smart. we appreciate your time. >> thank you. melissa: our own rich edson is going to be live in cyprus with the latest action there. he is on his way right now. he will get us the story from the front lines. adam: we rely on rich for
quite a bit. we'll take a bit of a breather for pepsi getting a makeover. they're launching a new look for the 20 ounce bottle for the first time in almost 17 years. pepsi's new bottle with have a contoured bottom. the rumors contoured after j.lo or beyonce is not true. melissa: first thing i would thinking about beyonce. adam: it would be a little wider. melissa: you did say that. adam: i did say that. that is not a bad thing. showing more of the drink itself. melissa: if you said my bottom was con toured i wouldn't take it nicely. adam: i would get a back hand. melissa: there you go. >> new design would be a hold, latest in series of promotional moves by pepsi including a multiple deal to sponsor super bowl halftime show and endorsement deal with the music superstar beyonce. melissa: maybe you do want a con toured bottom? what am i thinking. adam: down tore you ared --
contoured bottoms are not bad. melissa: ncaa tournament is underway but a champion is already kroupd, at least according to for's list. well tell you ho is number one. adam: look at ten and 30-year treasurys. no count tour there. in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're mang it.
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stocks getting a boost following better-than-expected earnings from companies like tiffany and nike. right now the dow is trading higher by 80 points. apple topping its 50 die moving average for the first time since late october. separately the tech giant is beefing up its cyberdefenses for customers. apple is adding on optional extra password generated by an app to protect apple i id and cloud accounts. they can access the new feature logging into the i.d. page. beatles. dallas based heritage auctions says the bidding for the 1967 album could fetch more than $150,000 by the march 30th auction. that's the latest from the fox business, giving you the power to prosper.
adam: madness is
appropriate. march madness. underway and there were a few notable up sets, a few? she is harvard grad, folks. in the midwest all higher ranked seeds advanced except for fifth seed oklahoma state sufferedded a 13-point loss to 12th ranked oregon. michigan shut down south dakota state. virginia common wealth making fast work of akron with a 88-42 victory. nail-biter in the southeast. california upsetting fifth ranked unlv. melissa: that was big one. >> syracuse, raw, raw, syracuse grad. melissa: nice. adam: number 3 ranked marquette advancing. in the west, gonz sag barely scraping out a victory against 16 seed southern. california over 8th ranked pittsburgh. the biggest upset of all,. melissa: wait for it. wait for it.
adam: 14th ranked, you say it. melissa: harvard. whoo-hoo. adam: ending third seed new mexico's run with 68-62. >> there goes my perfect picks. melissa: i will enjoy it while i can. adam: you and harvard. first-ever ncaa victory. melissa: first ever, since the beginning of time. adam: when you were going to school there you were a basketball fan? melissa: yeah. absolutely. adam: uh-huh. melissa: yes. and we went to the football games and stayed outside the stadium and had a beer with everyone else. adam: you were a beer fan. melissa: i played polo in college. i don't really advertise that a lot. adam: you rode a horse and doing polo. melissa: i was captain. adam: pass the grey poupon. melissa: all right, on that note, forbes is releasing 2013 list for the most valuable basketball teams. harvard obviously. being a number one seed having a value over $38 million mean the national championship is a slam-dunk?
we have the forbes chief executive editor and he joins me now with who tops the list. but before you tell me who tops the list, how do you, what variables do you use? how do you calculate this? >> oh, it is based on revenue from television tickets and premium seating primarily. congratulations on harvard. melissa: thank you. >> maybe we shouldn't be surprised? that is jeremy lynn's alma mater. maybe, you know, kind of have to expect this these days. melissa: it's possible. i don't know about that. but, i'm not sure. okay, so number one on the list is the louisville cardinals. they had a 7% increase in their value over last year. >> yeah, the best way to look at the top basketball teams like louisville, followed by kansas and north carolina, really aren't as baseball teams but as television content. that's why they're seeing so many changes in conferences. louisville going to the acc, which has one of the biggest tv deals, over billion. and that's really what is
driving revenue to the conferences and to these top teams are the tv deals. melissa: it is so interesting because we're a network all about money. so that's what we're focused on here. you list something called contributions that louisville had 20 million in contributions. who you is that tied into march madness? what does that mean? >> well what that is, that's the money that donors contribute to the schools. and one of the ways that colleges package these contributions now, they say, you know what? you want a seat at the skybox or some premium seating? well, how about on top of that you contribute money to the school? so that's one of the reasons why these basketball programs are so important to the universities because they also help bring in money from donors. melissa: and so why do they do that? they have already bought the skybox and they say oh, by the way we also want you to contribute another million bucks? >> well there is competition for these skyboxes and these teams have passion. they want to go. they want to bring their friends. there is also some bragging power there as you testify to when teams do well in these tournaments.
melissa: yeah. how much is a national championship worth to a school? >> well, it's funny, they don't get any money, the conferences don't from winning the title. melissa: right. >> but each game you're in, in the tournament, a maximum of five games, is called a unit. and it is worth about $245,000. that unit pays for six years. even if you only go to one game, you receive a payout for six years. so one game is worth 1.5 million dollars approximately. melissa: since you don't get paid, how do you get to $245,000? >> no, that unit, you do get paid. you get paid per unit. so that unit carries over, lasts for six years. so you get that $245,000 payout for six years. melissa: wow! mike, i had no idea. so interesting. thanks for coming on. >> thank you. melissa: worth a lot of money. and harvard won!. adam: polo? melissa: i know. i shouldn't have said that. adam: sandra smith. melissa: roll the tape back. adam: sandra smith, our investments are doing well.
not quite as well as they were 15 minutes ago but no one will complain with green on the screen. >> some of the food stocks are skyrocketing. if you don't know what this publicly-traded company is you probably know a few of products it has under its belt. oreos, trident gum, just in time for easter the cadbury cream egg. this company is way up. it has been outperforming the broader stock market up 18% this year. it is up today on a report from the "daily telegraph" that nelson peltz is adding to his stake in the company. this along with pepsi, leading to speculation he might push for a merger of those two companies. his firm declined to comment specifically to fox business on this but nonetheless that stock getting a huge boost. back to you guys. adam: sandra smith, thank you very much. you can look but you can't take it home. a look how e-commerce is changing one retailer's strategy. the cfo of men's clothier is next. melissa: take a look at some
of the winners and losers on a day the dow is up 80 points. micron technology trading higher by 12%. congratulations if you own that stock. we'll be right back. i'm a conservative investor. but that doesn't mean i don't want to make money. i love making money. i try to be smart with my investments. i also try to keep my costs down. what's your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives,risks, . read and consider it carefully before investing. risk includes possible loss of principal.
adam: have you ever bought clothing from a retailer and been unable to bring that clothing home with you? men's retailer that is combining a traditional brick-and-mortar store where the shopper can try on the clothes but purchase using the website. here to explain the unique retail strategy is the cfo brian wolff. you call this guide stores? >> correct. adam: you have five of them nationwide.
essentially you go and try on the product. you buy it online and shipped to your house in one or two days. how is this working out. >> that is uply mental flagship store. is the site we launched six years ago. they go to the guy shop. try what they like. a style that fits them perfectly. it gets to them in one or two days. we'll purchase it for you. we'll make the order and ship it to your house. adam: it just pants but suits, correct? >> correct. adam: what is moving the most in this retail process? >> interesting you say suits, suits sell better than the online. i'm wearing this suit. perfect for spring and summer. lightweight. $425. perfect for weddings to wear out. in the guy shop they tell three or four times better better than online. guy says, this is custom fitting suit but try it on
the bow -- bow nobody bows started with two students from stanford. this concept focuses on man. seems to work well with male shoppers. >> yeah. adam: would women be prone to be open for this. >> we get requests all the time for women's clothing. right now we're focuses on men's we're really focused on men. that is where our energy and focus is. this is great way for men to shop. men the weather changes and they realize they need to buy clothes and tactically find what they need. the guide shop is a personalized experience. adam: i have to imagine you also save, you don't have to invest in the brick-and-mortar. you don't have to have warehouses storing stuff. the logistics much be more efficient than traditional retail clothing outlet. >> that's right. we're in smaller space. a tip shop may be 2500 or
larger. typical store has 10 weeks inventory on half. we have 1 1/2. that saves we pass onto the customer to make sure he has a great customer experience requires you guys releasing what percentage of the sales are taking place through the guide stores as opposed to direct online? >> we don't release that we're a private company. we don't release numbers. channel is doing phenomenally well, way better than our expectations. we have five currently. in new york, boston, georgetown, san francisco. we plan to expand. adam: any other retailers calling you guys up, maybe not a competitor but different line. we want to look at this, how is it going? are you getting that kind of talk? >> we are. a lot of people are watching what we're doing. this is not a totally foreign concept a lot of showed rooming today. best buy is showroom for amazon. they go to a store, look at something and buy online. retail is changing. this is probably the biggest change in retail in 50
years. adam: fortunately the amazon doesn't have to pay over head for best buy has to pay. that is problem for best buy brick and mortar shops. brian wolf, from bonobos. best of luck with the guide shops, guide stores. i have a sneaking suspicion i will check them out. i might be a little old for the clothing but fits everybody. melissa: this is ton of buzz. they may have a cult-like following. of people who heard of them they sort of light up when they're talking about it. adam: i will give it a shot. melissa: interesting. a great business model d coming up tonight on "money", andrew merm hand -- herman is the former president of the american society of engineers. he joins me to discuss why the group gave united states drinking water and sewage infrastructure a d. it is falling apart. you want to watch this before you drink from the tap, let me tell you. 5:00 p.m. eastern on fox business. adam: i don't know if i want to drink from the tap. melissa: just going to scare you to death on the show. there you go. depends where you live.
depends what you're doing. a lot of information. want to watch the show. >> i will join tracy byrnes for the next hour of fox business. coming up attorney general eric holder actually said u.s. big banks are too big to prosecute? how is that message translating at the banks? former senator ted kaufman weighs in ahead. keep it here on fox business. [ male announcer ] you are a business pro.
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adam: welcome back, i'm adam shapiro. tracy: i'm tracy byrnes. it is a positive friday for stocks but the major up today sees are still on track for a losing week. the dow is about to break a four-week winning streak. so is it a sign of more losses to come? adam: citigroup, jpmorgan, goldman sachs, and more
among the many banks paying millions of dollars in sellments, sometimes admitting noing were doing. does the punishment fit the crime or are the banks getting off with a bargain? we'll take a closer look ahead. tracy: one ceo says, make no mistake, raising the minimum wage will kill job creation. the head of hardee's and carls, jr. tells us why ahead. time to go down to the new york stock exchange. sandra myth is standing there. market is a positive, at least, sandra. up 78 points on the dow. >> not looking so bad. you have the dow up 78 points. trading just shy of the 14 thoushgs 500 mark. we're -- 14,500 mark. we would have to close about 14,51 for the day. so we're 14 points shy of where we need to close before a positive finish for the week. best performer so far this
week, cock cola. that is the biggest gainer. we're helping out stocks across the board. better-than-expected earnings came from retailers. nike, better than expected. tiffany putting out numbers better than expected. their outlook for the year is looking pretty good. all that is playing a big part canceling out negativity from cyprus and uncertainty there. by the way a lot of professional traders watch the s&p 500, watching the weekly chart there. a close before 1560 for the s&p would be a lower close for the week. we're 4 1/2 points shy of that right now. this would be a negative close to the week for the s&p 500. and that, guys, would snap a three-week whipping streak, for the s&p 500. so, watch those numbers, we're at 14,500 for the dow. back to you. tracy: sandra smith, see you in 15 minutes. you reported on our show yesterday, the nike earnings. you were looking at the numbers. they blew it out of the park. that is good stuff. sandra, see you in a few. adam: wall street waits as
patience runs out in the european union with cyprus facing a banking collapse. the country must meet a critical monday deadline for a rescue plan to stop it from being the first country ejected from the eurozone. with more here is liz macdonald with emac's bottom line. >> that's right. we have reports out of reuters, cautious optimism there may be a deal struck over the weekend to settle the cries sus -- crisis in cyprus. this is a really fluid situation. the latest developments at this hour, cypruu, the top deputy of the ruling party in cyprus is saying that they are sticking to a framework. they come up with a framework that they think the european union will sanction and say, yes, let's green light this. then that in turn they can unlock the bailout funds from. e.u. it would avert a meltdown but the exit of cyprus out of the european union. they have given no details at this hour but what we're hearing out of wall street and people close to the
situation and reuters also reporting it, that the bank tax may still stay in place and here's why. because, this is, likely see the muted reaction on wall street to the situation in crisis, situation in cyprus. germany likes the bank tax because it insulates european june zone taxpayers from any bailout money coming out of their pockets. meaning it would be funded out of taxpayers own wallets. they want, by the way, germany is facing elections six months away. so that's why they like the idea of the bank tax. you may see that or it may go away. the situation is very fluid. right now we're seeing depositers in cyprus with severe restrictions on their bank accounts. let's show you what is going on over there. this is out of cypriot parliament. when you see the level of detail you will essentially say to yourselves, wow, this situation is worse than we realized. do we have the full screen? let's show it. restrictions to stop money from flooding out of cyprus.
you will see essentially basically withdrawal restrictions. ban on premature termination of cds. converting existing savings accounts into cds. restrictions on debt, credit, prepaid debit cards. i want to get to the final bullet point. this is what cyprus is saying, any measure the finance minister or governor of cyprus to stop movement of capital out of cyprus's banks. they're trying not to let the money flood out of the country. this is what we're seeing at this very hour. still talk of a solidarity investment fund where people from around the world, countries from around the world can invest in the fund. still moscow is saying you know what? we'll not help out cyprus just yet. that's what we're hearing this hour. tracy: lizzie, we unfortunately don't have ton of time. this money is ours and we'll do what the hell we want with it. >> type produce's money is the government's, if they want the european central
bank money. this is politically dicey for germany. that is why germany says, cyprus has to fund its own bailout with the bank deposit tax. we'll watch out throughout the weekend, if this flies it would be a big deal to stop, for the first time, a member country of the eurozone exiting in the 14-year history of the e.u. monetary union. adam: you have got to wonder people in spain and italy say i might want to get my money out. >> one point. talk of wall street, 2011 plan floated by a germ man bank official to tax bank deposits in italy. that is on the radar screen again. watch out if they do the bank tax. you may see it come up in italy. adam: liz macdonald, thank you. tracy: the lira will be back, too, lizzie. i carry it around for good luck. u.s. stocks so far struggling off today's new concerns about cyprus. our first get says overall fundamentals still look good. hank smith from haverford trust. he joins us from
philadelphia. hank, glad you're here. fundamentals do look good in the states. banks have cash on hand. you really can't find any error yet we have market that kind of doesn't want to find its footing it? >> well the market has come a long way since the november elections. tracy: sure. >> so it's probably due for a pause here but i don't think a pause, pullback, correction, whatever you want to call it takes away from the fundamental case we're in a bull market and we probably have a long ways to go before this bull run is over. adam: hank, let me ask you a question. this is adam shapiro. you refer to it as investable pullbacks, opportunities to get in? >> right. adam: we have a graphic that shows it. last two months, january, february of this year we saw a huge amount of money come back into the market. i think it is 55 billion according to trim tabs. do we have the graphic? >> right. adam: that money, isn't that usually the sign we are at the point of the rally that you don't want to becoming
in? >> well, that includes global funds as well as. as far as domestic u.s. equity funds, the numbers are about 21, 22 billion through february. and look, the previous five years saw every year outflows totaling 601 billion. so we have a long ways to go before we reverse that trend. we would argue that, yes, we don't have the fear an panic that we did four years ago in march of '09 but we still have fear, we still have anxiety and the anxiety has shifted a little bit from one of fear of losing money to fear of losing an opportunity. and i would say we're still in the early innings of sentiment shifting from this anxiety and fear toward one of more confidence. and we think that is bullish. tracy: yeah. i really do hope people are listening and they take advantage and they get in.
don't fight the market. just get in it. you're not making any money in your savings account. that being said where are you telling people to ride this wave? because you're right, it will go up for a while. >> look, all that money sitting in short-term bond funds earning very little to nothing or money market fund earning absolutely nothing you can buy, high-quality, blue chip equities that have better than bond yields. so not just better than the 10-year treasury but better than their own 10-year debt. tracy: right. >> you can do that in a diversified manner, not just in the traditional dividend rich sectors like telecommunications, apple, ge, who else? >> absolutely, apple at dividend yield. they will proctor & gamblely take it over to 3% yield. ge has a long ways to go before it gets back to its old high. you're getting paid 3, almost 3 1/2% while you wait.
and the pharmaceutical companies are over a secular bear market and in our opinion, in the beginning of a new secular bull market where most of the patent expirations are hewlett-packard them. they have robust pipelines and they are paying above average dividend yields as well. tracy: and at this point, i don't think people are, should be nearly as concerned about taxes as they were in the past. so these dividend stocks are still a really good place to be. hank smith, thanks for taking the time. >> have a great weekend. >> we had howard ward here from gamco saying he is epaing that apple will raise the dividend by mid-april. get in it while you still can. adam: mr. einhorn will appreciate that. tracy: somebody will. adam: still to come, what if your kids said i admit nor deny guilt? former banks get to do that former senator ted kaufman says the banks are paying a big price when we neither
admit or deny guilt, let's settle. tracy: he was an early critic of obamacare cost to business. cke ceo speaks out against the president's plan to hike the minimum wage. he is here. as we head out to break, we've got to check on oil. oil is up about 77 cents at $93.23 a barrel. we'll be right back.
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tracy: that time of day, time to make money. charles payne is here. jeweler tiffany expecting global sales to rise 15%. clearly those are not americans. >> clearly not americans. this is clearly lofty guidance by these guys. they warned for the first
quarter, which is the fourth quarter in a row but the second half will be gangbusters. they came out with earnings., high-risk i was shocked the stock was up on the numbers. i really am. part of the street giving them the benefit of the doubt. the americas were up 2% but they opened 1 stores, right? four in the u.s., six in canada, one in brazil, two in mexico. flagship store in new york, down 3%. tracy: like a church it is so quiet down there. >> it is bad. they need to spruce the joint up. i feel like i'm walking, i will see cary grant come around the corner and doris day. tracy: that would be romantic and fun. >> that is, the people, it is an art to retailing how to make people spend money. i walk past it into the nike store the other day, a big roommy place that is booming and moving. this is different audience and constituents. it has to be more inviting that store. adam: why is the stock going
up if they missed essentially the street? >> they give them the benefit of the doubt. it has been down a lot. some people think the valuation is okay. one of the reasons i'm in for more speculative subscribers. i think there might abid. lvmh might be a bid. that is total, total speculation. it is an amazing brand. it is an amazing name. i think they need new management. i think new management would turn things around? adam: mr. johnson from jcpenney? he might be available, right? i don't know if they give him the gig. certainly wouldn't have the perks the jcpenney has. that is good one. tracy: i don't know, charles painl. i don't know. but up nevertheless. >> sometimes the stocks tell a story and this one won't stay down. tracy: i take it. >> definitely take a blue box from there. tracy: i'm not a jewelry girl. adam: you don't like bling. tracy: i don't like bling. i don't know. >> i can't --.
tracy: i'm a conundrum wrapped in quandary as neil cavuto once called me. adam: you like to go to taco bell. tracy: have a great weekend. adam: looking for new ways to save money? if you're tired of the usual advice a new group is offering some ideas on ways to cut household costs. wealthy investment bankers, oh, and their which was, have some suggestions for you. this is from current and former bankers and their spouses. first tip. public school instead of private. send the kids to public school. tracy: they don't do that? adam: this is what they said. tracy: they're lying. adam: do surprisingly well, one ex-banker. another one, iron your own clothes. one former banker at goldman says, there was a service in the basement where i dropped my shirts off for a he too. now i ask jane to do it for me. uh-oh. tracy: got to be kidding me. adam: better be going to tiffany's. tracy: got to be kidding me. if i could only ask jane to do my shirts.
adam: takes me about 0 minutes to iron a shirt but it is good. ski more cheaply. that's right. ski more cheaply. tracy: that is oxymoron. adam: a trufl novel idea. cook your own food. cut back on ski trips. tracy: this made it to print? adam: the best. sell your second home and get a prius. [laughing] by a used car. four-cylinder, gasoline engine will always do better. >> did mitt romney write that? tracy: all right then. make some real money. let's go down to the floor of the new york stock exchange. sandra smith is there. what's going on, sandra? >> hey, tracy. we're watching shares of blackberry, the much buzzed about new blackberry hits stores today. of course this is after a two-month delay. very much anticipated. this is the new d-10. shares are down today. remember the stock has enjoyed very nice gains leading up to this. it is up 8% for the week.
up 21% for the month. remember by the way it is entering a very, very competitive marketplace. so the still a lot of work to do. back to you. tracy: sure is. sandra, she you in 15 minutes. still in my old school curve right here. not going anywhere. coming up banks paying millions of dollars in settlements sometimes without admitting anything wrong. hey, why not? they're getting off too easy. former senator ted kaufman will weigh in next. adam: plus a special day for the best-selling musical act of all time. the beatles. we'll tell you why. here is how the dollar is moving right now. ♪ . ♪ [ male announcer ] how could a luminous protein in jellyfish,
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>> at 22 minutes past the hour, i'm arthel neville with your fox news mine. italian president napolitano has reached out to the leader of italy's democratic party to try to form a new italian government. the eurozone's third largest economy has been politically deadlocked since no party won last month's general election. president obama is in jordan, the final stop on his four-day visit to the middle east for talks with
king abdullah with jordan. his country has been struggling with more than 400,000 syrian refugees who crossed into jordan it escape the two-year civil war. those are the news headlines on the fox business network. i'm arthel neville and back to adam, to that curb-sporting tracy. tracy: you got it. >> i'm not laughing at you. tracy: sure you are. adam: we have an update on your future for you. citigroup, bank of america, hsbc, jpmorgan, goldman sachs, and more, on a list of banks that have paid millions and millions of dollars in settlements tied to financial wrong doing. the payouts have raised criticism that banks get off too easy. they don't have to admit or deny guilt, and it comes after attorney general eric holder made some interesting comments earlier this month. >> i am concerned that the size of some of these institutions becomes so large that it does become difficult for us to
prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy. adam: so are banks too big to prosecute? we want to bring in former delaware senator ted kaufman. he pushed for serious financial reform while he was in the, i think it was fraud recovery act. >> that's it, adam, you got it. adam: thanks for being on fbn. justice department, to date, who has gone to jail? >> no one has gone to jail and it is very disappointing and i'm very disappointed in what the attorney general said. the same thing that the head of the criminal division said lanny breuer in a speech in new york, that somehow the law enforcement officers are supposed to take into account the financial well-being of the potential perp who has broken the law. it just doesn't, it doesn't compute with me.
that is the first thing. the second thing is, if in fact people made wrongdoing you can go after individuals. the other problem with this, thing, adam, they don't go after individuals for criminal prosecutions. they can do that and that won't affect the health of the business. not only that, but will probably help the health. adam: we got the idea to help invite you on the program after the settlement was announced the, $116 million settlement with the sec of involving insider trading allegations from some people over in asc. >> right. adam: in that settlement as we see across the board certainly not a settlement which the taxpayers bailed out the sac. >> right. adam: we see it all the time, neither admits or denies guilt. >> right. adam: how will people pay a $616 million fine. we have the chart. goldman sachs with abacus deal. $500 million is a settlement. jpmorgan chase 154 million these are just one settlement within a year. there are millions upon millions of more they settled.
how do they get away with that. >> it has been a tradition. they haven't been doing it for over 10 years and is totally wrong. one of the problems when we try to implement some changes we need to do so we never have this happen again, one of the problems i think a lot of people on wall street said, well we didn't do anything wrong. you see it right now with the london whale. jpmorgan chase is saying again, they have this london whale, $6.3 billion. anybody who watches the permanent subcommittee on investigations it was like keystone cops when went on at jpmorgan chase. we made mistakes but ready to move on. that is what happened in 2008. they said we made mistakes. it's over we're moving on. here we are in 2013 they're finding new mistakes. the real problem, ad many today, people think they can get away with this. in fact, people i think generally believe on wall street they really did do nothing wrong but how you pay 500 billion, 500 million, a billion dollars worth of fines, how do you do with the stockholders and go to the stockholders, well, you know we did $500 million
worth of damage to your earnings but nobody did anything wrong? i just not believeable. adam: here is what is infuriating to people who are not on wall street but to people who are on wall street because we all have friends who play by the rules and watch others get away with this. ina drew, the people from jpmorgan chase admitted higher executives knew they were manipulating values of derivatives. >> right. adam: what will happen in the future since nobody is held accountable? >> i think, more of this is going to happen until we hold them accountable. good news, justice department, in the hsbc settlement, which was about drug, money laundering. adam: 1.9 billion. >> required they admit they did wrongdoing. other good thing, adam on the news, these are small visiontries but i'm looking for anything right now, according to the press, on the s&p negotiations where they brought suit, they were going to bring suit against s&p, the justice department refused to settle with s&p and unless they refused
admitted to wrongdoing, and they go to court. if they refuse to admit wrongdoing, go to court. picked up for robbing a store, shoplifting kid picked up for that, i will go to jail but part of the plea bargain is i didn't do anything wrong. adam: former senator ted kaufman, appreciate you joining us. perhaps we continue this another day, sir. that $1.9 billion settlement with hsbc they admitted wrongdoing, they in the settlement talk about putting the lives of american citizens in jeopardy and nobody was prosecuted for that. >> nobody was criminally prosecuted, adam. nobody was criminally prosecuted that is just wrong. adam: ted kaufman, thank you very much for joining us on fox business network. tracy: the story that we'll be talking about for a long time. here is another one, what do astronauts do when mission doesn't go as planned? contingency checklist used by poll low 13 is up for auction. find out how you own that an
much more space memorabilia. adam: could farmland be the next bubble? jeff flock is digging for details down on a farm in illinois. jeff? >> speaking of auction, this one is up for auction? you want to buy a farm with a nice set of bins and everything. why should you buy a farm? be back in a moment exactly why you should buy this farm, for sale tomorrow. stay tuned. gotcha !
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that's powerful. verizon. >> we are enjoying an upswing on the dell. take a look at the dow 30. a few of the stocks that are doing well at this hour. we want to head to the floor of the new york stock exchange.
sandra: keith, give us some color from the trading floor. what do you think about the market rally that we are seeing today? >> the cyprus news was a bit overdone. the s&p will go up and touch its all-time highs. sandra: that is a very bullish forecast. >> if the news out of cyprus and europe deteriorates over the weekend, there is a possibility that it could all venture off on monday. at the end of the day, the fed has a bigger bazooka than the ecb does. sandra: what do think that the fed will do? i think we will see action
before that. >> the risk of not doing anything else far outweighed the risk of doing too much. sandra: i will send it back to you guys. up 76% for the dow. we will see if we can finish in positive territory. tracy: prices of farmland doubling. jeff flock is in grundy county, illinois. hey, jeff. jeff: there wasn't a bubble in farmland when everyone else had their bubble. this has been a great buy for people, both for farmers and
investors. what happens with prices. prices are high right now. what if prices go down? >> the farm prices could go down a little bit. it depends on what the yield is. a very good crop year is always resulted in something that can sell. it does not automatically make that happen. jeff: if i look at the price of crops, they have tremendously run up. they have an ethanol mandate in the country. we have growth in the world. is this a good investment for an investor that is not even a farmer? >> long-term farmland has been a good investment for everybody. jeff: not making anymore of this this, i hear.
>> not lately. jeff: appreciate it very much. a lot of folks on wall street investing in farmland. >> not a bad idea. tracy: certainly less traffic out there in farmland. jeff flock, thank you very much. >> there is going to be a space auction in new york city on monday with some of the most sought after items of all time up for bid. david lee miller has the details. what do you have for sale and what are you buying? >> that was a great transition, by the way. the sale items will start at about a few hundred dollars estimated value to more than a few hundred thousand dollars.
a page from jim levels handwritten notes. the mission to the moon had to be aborted he had to do math to calculate their safe return. if he failed, their flight would have been doomed. also up for bid, dehydrated potato soup from the same flight. the price of the potato soup estimated to be around $8000. then, perhaps a much sadder side for the u.s. space experience, a dollar bill signed by members of the challenger space shuttle. it is also being auctioned. the starting bid will be about $1000.
the auction gets underway monday here in new york city. you do not have to be there to bid. tracy: who is selling these items? >> the majority of these items are coming from other collectors. some of the merchandise is also coming from the astronauts themselves. up until recently, nasa try to prevent the sale of space artifacts. a few months ago, all of that changed. >> there was a bill written into law last september by president obama that that the astronauts were allowed unofficially to sell artifacts that they kept from the space program. it will now be available to collectors. this is the first major auction. space memorabilia prices have
soared. now that there is no ambiguity about ownership, they say prices will continue to increase. in light of this taking place, this auction house is going where no other auction house has. i couldn't stop myself. tracy: i do not blame you for that one. i can't believe the government is claiming something that is not their own. that is something not like our government. [ laughter ] >> the things astronauts wrote down, their notes, those things they can sell. they were paid as civil servants. >> live long and prosper. >> could not say it better myself. tracy: it is just getting started in the senate. we have details next. >> we will tell you why coming
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expected earnings from companies like tiffany and nike. replacing the united kingdoms aaa review. higher than expected government debt levels and downward revision. the decision on the rating level is due by the end of april. the cash register maybe nearing its final sale. they are opting to ring up sales on smart phones now. barney's plans to use ipods and ipod. walmart is arctic testing this. that is the latest from the fox business network. giving you the power to prosper. ♪
tracy: moto rama taking over the senate. it has not happened in years. rich and then in washington with the details. rich: the senate does this when it considers a budget resolution. it has just about started. even if the senate passes one of these amendments, they become part of a non-binding was resolution. later the senate votes to decide for states to charge a sales tax on internet purchases. the house has passed its budget. the house does sometime this evening.
mitch o'connell says no entitlement changes, note that feeling increase. >> what we need to do is have a spending reduction. we have done a decent job with regard to the discretionary part of the budget. the entitlement side has not been touched. we cannot save the country because of this. rich: democrats say congress should increase the ceiling. for today, it's budget amendment voting in the u.s. senate. back to you. tracy: or doing a lot pizzas tonight. thank you very much. >> they will fight over whether it is pepperoni or much room. we will check in with sandra smith now. sandra: a bit of merger speculation.
we are looking at these food stocks. it is a big food company. they are adding to the stake in this company. he has adding a steak and pepsi. that speculation is leading to a gain in both of those stocks today. nonetheless, some big games there. back to you. >> thank you very much. tracy: one ceo blasting the president plan to hike the minimum wage. and a poser tells us why he is so against it next. >> first, take a look at some of today's winners and losers. ♪
tracy: ceo of parties has been a long time critic of president obama. the healthcare loss would increase his cause by 150%. now he says the president plan to waive the minimum wage would cause employers to create fewer
jobs. so glad to see you. we took a bunch of polls here at fox. we seem to know what is going on at home. >> they looked really good. it is good to be here. thank you. we have 68% of the people who believe that that is an immediate problem. i think only 27% agreed with that. a vast majority of people are very nervous about the economy. you have the majority of people who thought the sequester was a good thing. i do not think the obama people expected that. i think that really shows a lot more understanding of what is going on in the economy. the american people get it. we cannot borrow our way to
prosperity. tracy: recently on yoko munoz show, you said if you cannot -- i guess you should not be running the country. >> i think people see that. when you have these ridiculous expenditures out there, a lot of stations have been going through ridiculous ones. you are really trying to make a political point. you are not trying to solve the problem. we need leadership. tracy: i was always taught that your goal was not to be in the minimum wage forever. your goal is to be promoted out of it. >> i think the big problem is,
normally, politicians want to raise the minimum wage so they can go out and they look at what we are doing for everybody. they increase their prices so while you have a little bit bigger check, it is worth less. the problem today is american businesses are trying to offset food increases because of the drought last year and we are using half our corn crop for ethanol. then we are trying to offset energy prices. we have the highest tax rate for any country in the world. we have to get ready to offset the cost of obamacare. on top of all of that, the cost of labor, you are really telling businesses to hire fewer people. you will find more atms instead of cashiers at banks. you will find more kiosks at airports instead of people behind the ticket counter.
you will find kiosks in fast food restaurants. you lose the personal service. when you increase the cost of something, american businesses use it less. if you do that to labor, it will hurt employment. tracy: you are right. i do not have to pay healthcare on a kiosk. i do not have to pay fica. the kiosk is the way to go. they come in and out of your restaurants every day. what are they saying? what do you hear from them? >> the big complaint that we are hearing right now is about this payroll tax increase that occurred in january. this is something that hit a lot of people. if you make under $113,000 a year, it is something that impacts you all year long.
it is something that is a big concern. we also hear a lot about gas prices. these are the kinds of things that affect spending. you are affecting not only the cost side of the business, but you are affecting the revenue side. how do you expect businesses to grow and create jobs if you are hurting the supply and demand side? tracy: andy puzder, i hope you stay out there and keep fighting this big fight. thank you, sir. a company started by a little entrepreneur. >> the music revolution that changed the world all started 50 years ago today. the beatles released their own album, "please please me." it took a mere 12 hours to record. the 13 tracks included "i saw her standing there" and "love me
do." the best selling act in history. what percentage of the u.s. percentage ally -- alive today that was 50 years ago. tracy: i don't know, 40? >> close. it was 33%. they probably got to see them play on ed sullivan, to. tracy: we used to listen to them. we had 40 fives. >> your mom should have gotten cassette tapes. tracy: if buffett is buying a company, should you?
chairman and ceo is coming up in the 3:00 p.m. hour. we have a fox business exclusive. connell mcshane is still awake and here. "countdown to the closing bell" is next. do not go anywhere. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.